# C_2007170EN.01001001.xml

| 21.7.2007 | EN | Official Journal of the European Union | C 170/10 |
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21.7.2007

EN

Official Journal of the European Union

C 170/10

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Action brought on 23 April 2007 — Commission of the European Communities v French Republic

(Case C-214/07)

(2007/C 170/17)

Language of the case: French

Parties

Applicant: Commission of the European Communities (represented by C. Giolito, acting as Agent)

Applicant:

Defendant: French Republic

Defendant:

Form of order sought

| — | declare that, by failing to implement, within the prescribed period, Decision of the Commission of 16 December 2003 on the aid scheme implemented by France for the takeover of firms in difficulty (State aid C(2003) 4636) (1), the French Republic has failed to perform its obligations under Articles 5 and 6 of that decision, the fourth paragraph of Article 249 of the EC Treaty and Article 10 of that Treaty; |
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declare that, by failing to implement, within the prescribed period, Decision of the Commission of 16 December 2003 on the aid scheme implemented by France for the takeover of firms in difficulty (State aid C(2003) 4636) (1), the French Republic has failed to perform its obligations under Articles 5 and 6 of that decision, the fourth paragraph of Article 249 of the EC Treaty and Article 10 of that Treaty;

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| — | order the French Republic to pay the costs. |
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order the French Republic to pay the costs.

Pleas in law and main arguments

In support of its application, the Commission claims that the defendant has not taken the necessary measures to ensure the rapid and effective implementation of its decision, because, more than three years after its adoption, there has been no repayment whatsoever of the aid illegally granted by the French State. Such a situation also clearly contravenes the fourth paragraph of Article 249 EC and Article 14(1) and (3) of Council Regulation (EC) No 659/1999 of 22 March 1999 laying down detailed rules for the application of Article 93 of the EC Treaty (2).

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Nor can the defendant rely, in respect of the period after 1993, on the absolute impossibility of implementing the decision of 16 December 2003. First, the French authorities did not truly take steps in order to recover the disputed aid, since orders for recovery were not even sent to the debtors. Secondly, those authorities cannot rely on the difficulty of identifying the recipients of the aid in question because, as tax authorities, they could easily quantify the amounts of the tax exemptions from which those recipients had benefited.

In any event, it is clear from the Court's case-law that the condition as to absolute impossibility of implementation is not satisfied where the defendant State merely informs the Commission of the legal, political or practical difficulties arising from the implementation of the decision ordering the recovery of the aid, without having truly taken steps against the undertakings concerned in order to recover the amount of that aid and without having proposed alternative methods to the Commission of implementing the decision which would have allowed the difficulties to be overcome.

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(1)  OJ 2004 L 108, p. 38.

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(2)  OJ 1999 L 83, p. 1.

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